The Profit for a Particular Project of Blue Fin Ltd,using

question 16

Multiple Choice

The profit for a particular project of Blue Fin Ltd,using the percentage of completion method,was $470 000 for year 1 and $690 000 for year 2 (completion) .
-What difference would there be to the total profit for two years if the completion of production method were used?

• A) Profit would be $1 160 000 higher.
• B) Profit would be $690 000 higher.
• C) Profit would be $470 000 higher.
• D) There would be no difference.

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Definitions:

Tempered Frame Rail

A strengthened frame rail, treated by heating and cooling, to enhance durability and load capacity.

Cooling Time

The period needed for a substance or device to decrease in temperature to a specified level after being removed from a source of heat.

Yield Strength

The highest stress a material can withstand without permanent deformation expressed in psi. In steels, yield strength is typically about 10 percent less than tensile strength.

Tempered Steel Alloy

steel that has been heat-treated to increase its strength and toughness, often used in applications requiring durability and resistance to wear.